Police investigating phone-hacking at the News of the World have recovered e-mails from India that could take the inquiry to a new level.

The Daily Mail has reported that the police may want to question Rupert Murdoch's son, James, and Rebekah Brooks, the former editor of the News of the World, about e-mails held at a storage facility in India.

On Friday night it seemed, according to the Mail, that the emails may incriminate James Murdoch and Brooks in a cover-up of the phone-hacking scandal.

This latest twist comes a day after James Murdoch was questioned for two and a half hours in parliament for the second time, on his knowledge of illegal practices at his company.

A technology company admitted to the first Home Affairs Committee that it was aware that News International has requested that hundreds of thousands of emails should be deleted.